Eos Energy Storage LSU CES Energy Summit October 21, 2015

Transcription

1 Eos Energy Storage LSU CES Energy Summit October 21, 2015

2 Who is Eos? Founded in 2008 to develop cost effective energy storage solutions. Solutions that are not only less expensive than other battery technologies but less expensive than the most economical alternative used today to provide the same services gas turbine for peak power generation and transmission and distribution assets for delivery capacity. Energy storage is a solution to real business problems and Eos is developing a battery technology that responds directly to the requirements of the business case at hand.

3 Why Energy Storage? Without cost effective storage, electricity supply must instantaneously match demand. The result is a costly and underutilized electricity grid. Energy storage can buffer demand spikes and meet growing needs with the infrastructure that is already in place, mitigating the need for costly upgrades while decreasing environmental impact. The problem in the grid is managing uncertainty increased amount of renewables, increased capital risks of fast moving technology, and increased security requirements. Storage is a key element of certainty! 3

4 Multiple use cases for energy storage Peak Shaving and Demand Management Renewable Integration, Solar/Wind Time Shifting Frequency Regulation Store excess base load generation and renewable energy produced offpeak Discharge during peak hours Counteract intermittency of renewable generation Smooth production cycles Eligible for entry to ancillary markets 4

5 Peak Shaving and Demand Management 5

6 Frequency Regulation Source: ORNL Energy storage is useful even in conventional utility settings 6

7 Why the Need for Frequency Regulation A gap between power generation and demand on the grid causes the grid frequency to move away from its nominal value. When demand momentarily exceeds generation, the missing energy is supplied by the kinetic energy of the generators rotors: the synchronous machines slow down, and so does the grid frequency. If generation is greater than the load, the grid frequency increases. Rotating machines are manufactured in order to work best within a given frequency range. If the frequency goes out of bounds, machines disconnect themselves to avoid damages, and blackouts can occur. 7

8 Renewable Integration, Solar/Wind Time Shifting Renewables such as wind and solar are intermittent, potentially introducing instability into the grid and limiting their viability as a firm, dispatchable power source. Peak production does not always coincide with peak consumption. Storage allows utilities and consumers to smooth production and time shift renewable energy. Solar electricity produced at noon can be stored and deployed as a stable power source at peak demand in the afternoon. 8

9 Renewable Integration, Wind Time Shifting Two days output and wind speed from a four section Midwestern wind plant (source: ORNL) 9

10 Energy Storage can create a firm dispatchable resource from solar and wind energy The Night They Drove the Price of Electricity Down Wind power was so plentiful in Texas that producers sold it at a negative price. What? By Daniel Gross (Slate) Source: U.S. Energy Information Administration, based on InterContinental Exchange (ICE) prices as reported by Ventyx. Note: Off-peak is 10 p.m. to 6 a.m. on Monday through Saturday and all hours on Sunday. Mid C is Mid-Columbia, COB is California-Oregon Border, and NOB is Nevada-Oregon Border. Record wind generation pushes ERCOT prices into negative territory By Robert Walton September 15,

11 Microgrid Storage Microgrids can operate seamlessly both in parallel to the grid and in island mode, providing critical customers and facilities with power even if the utility grid goes down. When combined with solar or other forms of distributed generation, energy storage can enable self sufficient microgrids that can power a facility for weeks. Energy storage enabled microgrids create access to electricity in remote locations and communities, where conventional distribution infrastructure is prohibitively expensive or practically unattainable. Variable sized individual homes, rural villages, industrial facilities, or supporting entire military bases. 11

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13 Why the push for Energy Storage??? 13

14 Current State of Grid Storage in the US Source: DOE confidential

15 California Assembly Bill 2514 Enacted in % of delivered electricity to come from renewable sources by 2020 Statewide energy storage mandate CPUC mandates in 2013 that California s big three utilities add 1.3 gigawatts of energy storage by 2020 confidential

16 CPUC Energy Storage Procurement Targets 16

17 How to solve the issue of Energy Storage 17

18 Source: EPRI confidential

19 5 Critical Requirements for Energy Storage Market Drivers Underutilization of Grid Infrastructure Low Cost /kwh Energy Storage Requirements Low cost per kwh is required to compete with incumbent grid solutions (e.g. gas turbines, copper wire). Price is the primary barrier to adoption today Need for Local Peaking Capacity in Urban Areas Growing Grid Instability From Intermittent Generation Reliability Concerns with Aging Infrastructure Long Life Energy Dense High Efficiency 100% Safe Amortization of upfront cost over long life (20+ years) is critical for cost effectiveness Compact footprint required for dense urban load centers or space constrained areas. Critical for distributed storage for locational capacity use cases High efficiency required to maximize revenues when charging and discharging the storage device Energy storage with little or no toxicity, fire hazard, and environmental mitigation required for siting behind the meter or in urban areas Storage technologies meeting these requirements will be the most flexible across applications and capture the largest market share 19

20 Source: Navigant Research 20

21 Lowest Current and Projected Battery Cell Price by type for Utility Scale Applications Source: Navigant Research confidential

22 Price Point Unlocks Key Storage Markets At <$300/kWh, batteries begin to be competitive with gas combustion turbines to supply peaking capacity At <$200/kWh, batteries can supply peaking capacity at lower cost than new CTs in almost all locations Large opportunity in dense urban areas, where there is limited space for new generation and/or T&D infrastructure, along with strong peak demand At Eos $160/kWh price point, IHS estimates opportunity for capacity resource battery market grows to 86GW by 2030 in the US alone Total Opportunity for Batteries to Compete in Capacity Markets (2030) Total opportunity to shave peak load (GW)* PJM ERCOT MISO SERC Canada SPP WECC NYISO CAISO ISONE >$500 $ $ $ $ $ Total battery storage CAPEX (real 2014 $ per kwh of storage capacity)** Notes: *The opportunity for batteries to shave peak load depends on their competitiveness with gas combustion turbines in capacity markets, and the incremental demand for new capacity resources. **Including battery module, balance of plant, and EPC costs. ERCOT does not currently have a mechanism for mandating load serving entities to procure capacity, but this chart assumes that batteries will still compete with CTs to supply peaking capacity needs. Source: IHS 2014 IHS confidential 22

23 Typical Multi Megawatt System Installation confidential

24 Successful Deployments in the US and Abroad Systems shipped to ConEd in New York and GDF Suez in Belgium with current focus on scale up to systems 500 1,000 kwh in size. Aegis Partner testing supporting commercial product integration, maintenance, and warranty. 18 kwh System Completed 11/ kwh System Completed 1/ kwh System Completed 4/ months of successful testing with continued operation at DNV GL s facility in upstate NY DC battery system currently being integrated at GDF Suez s test center in Belgium AC system performing 4 hr load shaving, testing w/ Aegis partners supports product design & warranty confidential 24

25 Eos Introduces Lowest Cost Energy Storage Product: Aurora The Aurora is a 1 MW 4 MWh DC battery system designed specifically to meet the requirements of grid scale energy storage Low cost Critical Attributes $160/kWh Long Cycle life (Full DoD) 5,000 cycles Pictured above: 250kW/1000KWh subsystem BATTERY MODULES RACKING/ CONTAINER BMS AURORA Other Relevant Attributes Energy Density Efficiency (Full DoD) Safety 1MWh / 40 ft container 75 80% Non hazardous Non flammable The Aurora system can reduce cost and maximize profitability for utilities, project developers and industrial end users confidential 25

26 What Does This Mean for Louisiana? 26

27 Over 92,000 MW of land based wind potential ~1% can power more than 255,500 homes a year Louisiana Annual Average Wind Speed at 80m 27

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29 Powered by the Sun: Entergy New Orleans Launches First Utility-Scale Solar Project 05/12/2015 Addition of batteries will store harnessed energy for later use The 1 megawatt project, which will be built on existing company property off Chef Menteur Highway, will consist of more than 4,000 solar panels and is estimated to be in service by late

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31 MARKET EOS PRODUCT COMMERCIALIZATION Storage Appliance Strategy ABOUT EOS Partnership Options & Approach Eos Product, OEM Distributed OEM Branded Product Potential Entry Markets Market Test in California (CEC/UCSD, SGIP incentives) and New York Residential & Commercial: Demand Mgmt, Solar Integration, Reliability Industrial: Short Duration Backup and Energy/Demand Optimization Goal Storage Appliance Commercialization Applications Customers Productize sub modules to address growing market for smaller scale storage appliances at low cost Energy management Back up power Solar PV integration Off grid diesel replacement Residential, Telecom, C&I, Utility Partners In discussion with retail and manufacturing partners to lead product development and distribution 2kW 8kWh Residential Product 125kW 500kWh C&I Product Timeframe months Partnership opportunity with original equipment manufacturers (OEMs) to package, distribute and service behind the meter storage appliance products with Eos confidential 31

32 MARKET EOS PRODUCT COMMERCIALIZATION ABOUT EOS Eos Wins $1.9M Storage Appliance Demonstration at UCSD Proposal Overview Demonstration of multiple Eos battery systems distributed behind the meter on a stand alone basis and integrated with solar PV Eos 3 12 Residential System Eos Commercial System Teaming Arrangements Host Site: University of California San Diego Integration Partner(s): Bay City Electric, RP Power, Rhombus Energy Solutions, Stem Utility Support: SDG&E, SCE, PG&E Economics: Brattle Group M&V: DNV GL Project Cost & Timeline Target installation date of mid yr testing, measurement & verification Coordination with SDG&E experimental rate design pilot & new SCE rate structures Total project cost: $1.9M Eos wins $1.9M CEC funded project to demonstrate Eos low cost storage appliance products at the University of CA San Diego confidential 32

33 Eos Uniquely Able to Drive Rapid Market Growth 1. The Eos Product: Tailored to Industry Needs Low cost, long life, safe, efficient, and compact zinc hybrid cathode (Znyth ) battery At $160/kWh, Eos is a low cost leader and a cost effective solution in a wide range of applications 2. Path to Commercialization: Paved by Strategic Partnerships Eos technology specifically designed to use standard manufacturing equipment and processes, enabling two years of MW scale production with manufacturing partner for only $5M in CapEx The Eos Genesis Program includes 8 global utilities for product development, pilot demonstrations and broad commercial deployment, creating a rapid path to market 3. Storage Appliance Strategy Utilize $1.9M grant to demonstration storage appliance products at UCSD in mid 2016 Develop partnerships with original equipment manufacturers (OEMs) to package, market, distribute, and service residential and C&I storage appliance product(s) Introduce game changing storage appliance product in early 2017